In writing about autonomous cars, we tend to discuss the advances in (or shortcomings of) self-driving technology. We make assessments based on how well (or how poorly) autonomous vehicles have learned to drive like humans.

In writing about autonomous cars, we tend to discuss the advances in (or shortcomings of) self-driving technology. We make assessments based on how well (or how poorly) autonomous vehicles have learned to drive like humans.

Worried about your car being hacked? The Federal Bureau of Investigation and the National Highway Traffic Safety Administration are, too, and they've published some handy tips to keep you and your ride safe.

Worried about your car being hacked? The Federal Bureau of Investigation and the National Highway Traffic Safety Administration are, too, and they've published some handy tips to keep you and your ride safe.

New York City might seem one of the most car-hostile environments on the planet, but it really isn't. Take the city's annual auto show as irrefutable proof of the opposite.More >

New York City might seem one of the most car-hostile environments on the planet, but it really isn't. Take the city's annual auto show as irrefutable proof of the opposite.More >

By Richard Read

In America, auto sales are going strong, and as we mentioned earlier, they're poised to get even stronger this month. But if you're one of the many folks planning to purchase a new vehicle today -- or any day -- spend some time preparing for your shopping excursion. As the New York Times points out, failing to do so can cost you big bucks down the line.

BE PREPARED

If you're like most new-car shoppers, you plan to take out a loan to pay for your next ride. Chances are good that you'll rely on the dealership to arrange that loan -- after all, they're always promising super-low interest rates in their TV and print ads, so why would you look anywhere else?

The answer is simple: dealerships aren't banks. They're brokers, and like all brokers, they make their moolah by tacking on fees of their own.

Those fees usually comes in the form of added percentage points on your loan. The National Automobile Dealers Association insists that the average fee typically amounts to one point or less -- in other words, if a lender approved you for a loan at five percent, the dealership would tell you that the rate was actually six percent, pocketing the one-percent difference.

That difference can add up to a thousand dollars or more for the dealership. And really, all they've done is made a call on your behalf.

Worse: there's no requirement that dealerships disclose how much they increase loan rates. And some consumer groups insist that the average mark-up is upwards of two percent. All the fine-print-reading in the world won't reveal that.

For years, advocates have argued for a change in the system -- a shift from percentage mark-ups to flat fees. Dealers have fought such changes tooth and nail, insisting, as you might expect, that such fees would end up costing consumers more.

At long last, though, watchdog groups are making progress thanks to several auto shoppers who claim that dealers targeted them with higher mark-ups because of the shoppers' race. Unfortunately, it'll be a long time before any resolution is reached.

KEEP YOUR MONEY

There's a very simple solution to the problem of interest rate mark-ups, though: Secure your loan before you head to the dealership.

Start by calling a bank where you already do business -- either personally or on behalf of your company. Tell them you have an account and that you'd like to secure an auto loan. They'll take it from there.

On the off-chance that doesn't pan out, try a service like LendingTree. It's quick and easy, and you'll receive a handful of competing bids for your loan within a few hours. (You'll also receive a bit of email spam, but it's nothing that a good email filter can't sort out.)

True, LendingTree is a broker just like your local dealership, and loan rates that come through LendingTree could be slightly higher than if you went directly to the bank. The workaround? Find a decent offer on LendingTree, then contact the lender directly to see if you can negotiate a lower rate.

And if you've already taken the plunge and landed in a high-interest loan, don't worry: many banks will refinance auto loans nowadays.

Got any other tips or tricks for simplifying the auto loan process? Feel free to share them in the comments below.

*DISCLAIMER*: The information contained in or provided through this site section is intended for general consumer understanding and education only and is not intended to be and is not a substitute for professional advice. Use of this site section and any information contained on or provided through this site section is at your own risk and any information contained on or provided through this site section is provided on an "as is" basis without any representations or warranties.